When trading forex it's your mind who makes the money. It's not the market that gives you money. The market does what it does. So you need to be aware of your mind as much as possible at all times. MOM (Mind over Money) means that you don't chase the money, but let your mind extract what you deserve (based on your knowledge and abilities).
Putting your mind over money is not easy and it's an ongoing process. You have to see your mind as a muscle that you constantly have to train and maintain. As long as you're a trader, this process will not stop and it it won't always be easy either. It's like an uptrend; sometimes there will be small retracements. Those are the times you get help from your mentor or peers.
Many aspects
As diverse as trading styles and traders are, as diverse are the psychological aspects and problems that traders face. All these aspects are born out of the affect that monetary value has over your mind. The reason people have such strong emotions around money is because it signifies value. You value yourself by how much you have and what you own. It’s painful to have thoughts about what you don’t have and what you can’t do.
When in, about to take or after a trade, all of these emotions start to influence your ability to judge the market for what it is telling you. There are many tools and exercises to deal with this and that will help improve your trading tremendously.
Final words
Being aware of when your emotions are influencing your trading is just the beginning. Even when - after rigorously educating yourself - you know what to do when you become aware of the influence; it is still not easy to actually take those actions. This is because you need to change your behavioural habits and it can take a while to change habits. Being in a team and with a coach, can make a night and day difference in making this journey much easier.
#UrbanForex - Be conscious of your trading!
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Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
GBP/USD trades on a softer note below 1.2530 ahead of US PCE data
GBP/USD trades on a weaker note around 1.2502 during the early Asian trading hours on Friday. The modest rebound of the US Dollar weighs on the major pair despite weaker US GDP growth numbers. The US Personal Consumption Expenditures Price Index data on Friday will be in the spotlight.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Editors’ Picks
EUR/USD holds above 1.0700 ahead of key US data
EUR/USD trades in a tight range above 1.0700 in the early European session on Friday. The US Dollar struggles to gather strength ahead of key PCE Price Index data, the Fed's preferred gauge of inflation, and helps the pair hold its ground.
USD/JPY stays above 156.00 after BoJ Governor Ueda's comments
USD/JPY holds above 156.00 after surging above this level with the initial reaction to the Bank of Japan's decision to leave the policy settings unchanged. BoJ Governor said weak Yen was not impacting prices but added that they will watch FX developments closely.
Gold price oscillates in a range as the focus remains glued to the US PCE Price Index
Gold price struggles to attract any meaningful buyers amid the emergence of fresh USD buying. Bets that the Fed will keep rates higher for longer amid sticky inflation help revive the USD demand.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US core PCE inflation set to signal firm price pressures as markets delay Federal Reserve rate cut bets
The core PCE Price Index, which excludes volatile food and energy prices, is seen as the more influential measure of inflation in terms of Fed positioning. The index is forecast to rise 0.3% on a monthly basis in March, matching February’s increase.
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